Costa Coffee Marketing Plan China Marketing Essay

Costa Coffee Marketing Plan China Marketing Essay This paper aims at outlining the strategic marketing approach of Costa Coffee for entering a new market . Costa Coffee is the British part or retail sales of Whitbread Family. Whitbread is a British Multinational Company and it has franchises worldwide. Whitbread includes Hotels, Restaurants [Household names like TGI Friday], Health and Fitness plus Other Businesses. The contents of this paper include the marketing strategy of Costa Coffee and its expansion plans in China. Introduction The Story The history of Costa Coffee began in a mountain town outside the region of Parma, where there was the house of Costa family. In the late 60s, the Italian brothers Bruno and Sergio Costa, hungry for success, traveled to England, seeking an opportunity for professional advancement. By arriving there, they found how simple the English coffee market was. Motivated by their Italian background and Sergios skills in the roasting of coffee beans, they decided to return to Milan to enrich their knowledge and technique in Italian coffee shops. In 1971, upon their return to London, they bought a three-story building in Lambeth, where they set up their own coffee shop. In the beginning, the Costa brothers worked as producers and wholesalers and were supplying high-class restaurants and specialty stores. Soon, they built their reputation for their dedication to excellent quality of their product. However, in 1978 they had to find some employment for their wives in order not to interfere in their business. Therefore, they decided to create their first coffee boutique in Vauxhall Bridge Road, London, and assigned its management to their wives. This idea experienced tremendous success, and led the brothers to the expansion of Costa coffee boutiques and award their management to relatives and friends. Since the opening day of the first store to date, the same traditional method of slow roasting (18-22 minutes) of coffee beans is used, offering the delicious and fragrant blend Mocha Italia, from 6 Arabica beans and 1 Robusta. Listen Read phonetically Dictionary View detailed dictionary Today, Costa Coffee owns 500 shops worldwide. Costa Coffee believes in its employees skills therefore, it provides intensive employee training at the Cost Coffee Academy. VISION: Costa Coffee vision is to provide the best hospitality to its customers since its range of hospitality products range includes restaurants, hotels and leisure clubs. MISSION: To serve the best coffee in the true Italian style. BUSINESS PORTFOLIO: Costa Coffee has built an unrivaled reputation for coffee excellence, and this is achieved by fully controlling the process, from harvest and selection of coffee beans, from the roasting of the Italian maestros, the choice of engines and compliance with the procedures of manufacture of beverages, ensuring this way that customers can enjoy the same excellent quality coffee at any of Costa Coffee in the world. The drinks are served in 3 different sizes Primo, Medio and Massimo, and the customer can choose between the unique blend of Mocha Italia, or decaf, whole or skim milk and add an extra dose of espresso, flavored syrup, cream, candy or chocolate. There are 15 factors that are combined and help to create the perfect Costa coffee. In addition, in every store worldwide regular controls take place, which ensure consistency and maintenance of quality. Every Costa Coffee has a Barista Maestro (coffee expert) responsible for maintaining the excellence of the drinks served. COSTA COFFEE AND STARBUCKS: Starbucks is the largest competitor of Costa Coffee. Starbucks is the leader in the coffee shop market. Its international presence is in 50 countries. On the other hand, Costa Coffee, is the third biggest coffee specialist in the market with shops in 25 countries. Both companies have an excellent financial performance up to 2005 but in 2008 there was a decrease in revenue and operating profit as a result of the global economic recession. However, in 2009. Starbucks has an improving in cost structure and therefore its liquidity is better than Costa Coffee since it has managed to pay its short term debts. A key factor for both companies is globalization since most leading players in the foodservice market expand their operations in other countries. So the future success of Costa Coffee will be based on its operations outside the UK. The same applies for Starbucks. . THE CHOICE OF CHINA: China is one of the biggest economic forces in the world. Its domestic market is larger so there is a lot of potential for multinational businesses. Its average GDP growth rate is more than 10% despite the global economic crisis (10.9% last quarter 2009) (BBC China economy 2009). International financial analysts believe that the growth of the Chinese economy will continue. Regarding the coffee industry in China, it should be noticed that competition is quite intense but sales in cafes has grown by 8% to RMB36billion (over  £3,487million). It should also be noticed that in 2009 coffee shops chains had a growth of 22% (Euromonitor International August 2009,Cafà ©s/bars China). However, the Chinese market for many international companies is considered a tough market since it is difficult to understand local culture and customeCNY. Therefore, many companies pursue joint ventures and strategic alliances in order to do business in China. In 1998, Starbucks entered China and it has 180 coffee shops. In 2006, Costa Coffee entered China in a different way i.e. through a joint venture with Yueda Group which is based in Jiangsu Province. This was done because a local partner knows the market better so market penetration for the new entrant is easier. However, this also means that Costa Coffee is heavily dependent on Yueda. Costa Coffee has a strong Italian aura that aims at attracting the Chinese market. Affluent Chinese customers want to taste a coffee that is represented by a global brand name. So far, Starbucks has been quite successful in this area. The risk is that by being a partner with Yueda, the brand will be customized too much therefore, Costa will lose its competitive advantage which is the Italian aura. Starbucks has very aggressive expansion plan in China. The crucial point is if Costa Coffee will maintain its brand essence and will not be customized. In this case, Costa Coffee will be a strong competitor to Starbucks. Future trends Strategy The main issue for chained coffee shops is to create a unique experience that cannot be easily copied. The consumers want to enjoy their coffee in a nice environment. The coffee shop space should be comfortable with an ambiente that will be inviting so the consumers will return to the shop again. People will want to live the espresso experience at home so the sales of equipment and coffee will increase as well as the demand for better and higher quality of coffee and beverages in coffee shops. Corporate social responsibility is another issue that chained coffee shops should take care on. They have to prove that they implement ethical practices. Regarding marketing, researchers predict that chained coffee shops will use mobile apps and have social networking tools in the very near future. COSTA COFFEE Financial Data Turnover:  £263.8m (2008:  £216.3m) Operating profit before exceptional items:  £22.7m (2008:  £20.8m) Number of outlets: 881 in the UK, 407 overseas Total Revenue  £ (m) Strategy Our target for Premier Inn during 2009/10 is to deliver around 2,000 new rooms in the UK and overseas. We have a strong pipeline of secured sites and will continue to develop a land bank. Internationally, our first hotel opened in Dubai during 2008 and we will build on this position, intending to open a further two hotels in the Emirates plus one in India. We plan to open around 100 new Costa outlets in the UK in 2009/10. We will capitalise on our strong Costa brand by focusing on new locations, as well as areas where we can replace existing operators, such as in supermarkets, hospitals and leisure facilities. Costa will also continue to strengthen its position across international markets, adding 100 net new stores in the year ahead. MARKETING OBJECTIVES: Enter Greek market and develop a significant market share; Increase product portfolio by new high caliber products; Bring more value to shareholders; Be a leader in its field for customer service; Develop alliances with commercial partners and the communities in which Costa Coffee shops operate. TARGET MARKET Costa Coffee offers a wide range of products suitable for all consumeCNY. So far, coffee in China is consumed in big cities (Beijing, Shanghai, Guangzhou). Coffee producers have targeted young professionals since they are the most westernized, affluent and open-minded. However, they see it as something that is in fashion rather than a regular habit. Another target group for coffee consumption are returnees i.e. Chinese that studied in Western countries and come back to China. They are also affluent and they are accustomed to visiting coffee shops. Ex- pats are another target group. Chinas economic growth has attracted a lot of investments from foreign companies. Ex-pats are used to drink coffee and their number increases every year. It has been estimated that businessmen from Hong Kong and Taiwan as well as Westerners amount to 30% of customers at multinational chained coffee shops as Starbucks. The above customer base has been quite saturated so there is a need to increase customer base. However, coffee is considered a luxury good and the average Chinese cannot pay for a cup of coffee. The average Chinese annual income is RMB 8000 yuan whereas a small cup of Starbucks coffee costs RMS 12 yuan ($1.5 which is the same price as in USA). In the big cities the average annual income is higher however it is still difficult for someone to consume a cup of coffee. If coffee still goes on being considered as a luxury good, it will happen the same thing as in Japan i.e. it will take China more than 90 years to make coffee popular. Market Segmentation: Based on the above the following market segments were defined: Young / Mature professionals Returnees Ex-pats Students Middle Class Upper Middle Class Single Married Bus section and train/airplane passengers Marketing Strategy: Costa Coffee will follow Market Development strategy and the reason for choosing this strategy will be explained below: CURRENT NEW PRODUCTS PRODUCTS 1. Market Penetration Strategy 3. Product Development Strategy 2. Market Development Strategy 4. Diversification Strategy CURRENT MARKETS NEW MARKETS   Ãƒ £Ã¢â€š ¬Ã¢â€š ¬Ãƒ £Ã¢â€š ¬Ã¢â€š ¬Coffee is considered a luxury good. This misperception hinders businesses in identifying customer groups and implement marketing strategies. This misperception also hinders the majority of the population to get acquainted with coffee. The same happened in Japan, where coffee was also considered as a luxury beverage with unreasonably high prices. It has taken almost 90 years for Japan to get acquainted with coffee and still per capita coffee consumption is quite low. This makes things worse since Japan sets the trend for Taiwan and South Korea.   Ãƒ £Ã¢â€š ¬Ã¢â€š ¬Ãƒ £Ã¢â€š ¬Ã¢â€š ¬In China coffee shops open every day in cities like Beijing and Shanghai. However, the average Chinese cannot afford a cup of coffee everyday. Multinational coffee companies have faced difficulties in developing the Chinese coffee market. Although they know how to penetrate mature markets but they see that they have difficulty in immature coffee markets. These companies need to understand better China and its people. Without understanding them all marketing campaigns will be in vain. A characteristic example is the marketing campaign of Nestle which was targeting at the young middle class Chinese although in reality this class does not exist or even if it existed they would not be heavy coffee drinkeCNY. Starbucks has increased awareness but it needs a different strategy for the Chinese market. Only KFC has been quiet successful. Starbucks success cannot be considered as sustainable since it was based on management, financial power and brand name whereas the Chinese market needs entrepreneurship to advance it and this is what Costa Coffee is planning to do. Coffee has been promoted by the Chinese government through festivals and fashion awards however these strengthened the misperception of coffee being a luxury good. Local coffee shops add too many side things such as food, spirits etc. Therefore, they dilute the idea of coffee. Coffee is a product that does not hurt health, stimulates the brain and it is addictive. Based on researches someone who has drunk coffee three times a week for two months in the row is addicted to coffee. Brain stimulation is important for personal wealth and intelligence. Coffee became popular because coffee shops were focused at making the customer accustomed with coffee. When people get accustomed then the market develops at an extremely fact pace. The coffee shop is important for this development and a coffee shop can be a seated place or coffee stands and carts. It is important to make people drink coffee and then offer them ground coffee. Many companies have found as an excuse the fact that tea is dominant in China and there is no place for coffee in a tea dominant country. However, there are no major tea companies that can compete international coffee giants nor is there a specific promotion to protect tea. On the contrary local society support the development of coffee houses and it is not negative to coffee. Costa Coffee will focus on making people drink more coffee. Its new coffee shops will be around areas where people gather such as Universities, stations and office buildings etc. This can be the best promotion since if one group of people becomes loyal to coffee then it will influence other consumer groups. Costa Coffee will focus specifically on these people and its promotions will be measurable and specific. Coffee has an unbeatable image in China and it is known to everyone. Costa Coffee will be based on the quick service restaurant (QSR) concept. QSR is based on the idea of offering cheap, clean and good food and its purpose is to sell to a wider range of population. Costa Coffee plans to adopt this concept. Coffee has a high profit margin but food is what attracts people to the coffee shop. Costa Coffee already offers more products than coffee; however it should plan to add more snacks that are better suited to local customers and a cheaper but good quality filter coffee for taking away. Many local Chinese coffee shops offer food however, they have not formulated a strategy so they cannot be considered as potential competitoCNY. So far in these shops the restaurant is separated form the coffee house something that it is not the case of Costa Coffee. In the next two years the aim is to introduce new product lines that will be offered at affordable prices for the average Chinese consume r. It should be noticed that this does not mean price cutting since this will hurt Costa Coffees brand name. The location of the new coffee shops is also an important part of Costa Coffee strategy. Up today, the coffee shops were opened at locations where population is dense and the income is high. As a result, the rental prices are quite high. Therefore, Costa Coffee is planning to open new shops at bus stations and other busy intersections where rents are lower and the traffic is big. The marketing strategy that will be followed to China is important since it influences neighboring states such as South Korea which is also a new coffee consuming country. If the model of highly expensive coffee will be followed then the consequences will be similar to Taiwan and Hong Kong where there is a negative trend in coffee growth. à £Ã¢â€š ¬Ã¢â€š ¬Ã‚     Ã‚  Ã‚  Ãƒ £Ã¢â€š ¬Ã¢â€š ¬Ã‚  Ãƒ £Ã¢â€š ¬Ã¢â€š ¬Ãƒ £Ã¢â€š ¬Ã¢â€š ¬Ã‚   à £Ã¢â€š ¬Ã¢â€š ¬Ã‚     Ãƒ £Ã¢â€š ¬Ã¢â€š ¬Ãƒ £Ã¢â€š ¬Ã¢â€š ¬ SWOT ANALYSIS: Strengths Weaknesses Established brand name worldwide Expensive prices for the average Chinese consumer Wide range of products Starbucks dominant position in the market Third ranked coffee shop chain in the world Coffee is considered a luxury good Know how of Yuda (local partner) Tea is the daily beverage of the average Chinese Opportunities Threats Big market potential a lot of Chinese Consumers that do not drink coffee Stagnant coffee growth due to high prices Unbeatable image of coffee Possible marketing enforcement of tea companies No competitors are located at bus intersections PESTEL ANALYSIS: Political China has a stable political environment that welcomes foreign direct investments. Economic The Chinese economic growth is impressive (10% per annum). Social Although the income of the average Chinese consumer is low, there is a growing middle class -190 million urban households, or 29%. According to McKinsey, middle class is expected to expand to 75% (372 million), by 2025 (DAltorio 2011). Technological New coffee machines are produced so making coffee at home is easier. Environmental There is a trend in producing organic coffee. Legal There are no legal issues involved. MARKET POSITIONING: The positioning strategy of Costa Coffee will be in line with its international strategy i.e. THE ITALIAN COFFEE MASTERS. The competitive advantage of Costa Coffee is the quality of their coffee. The image of the company is that is has a UNIQUE coffee. Another positioning of Costa Coffee is that this excellent coffee quality can be offered with affordable prices (launch of the new take away filter coffee). THE ITALIAN COFFEE MASTERS This is the tag line that will communicate the Italian aura of Costa Coffee to the mass audience. Since Chinese consumers perceive well the Italian atmosphere it is expected that it will attract more people to Costa Coffee. MARKETING MIX: Product: Brand Name: Costa Coffee is a well established brand that signifies luxury, perfection and excellence. Chinese consumers prefer established brand names. Image/Theme: Luxury Costa Coffee is related to luxury. The coffee shops ambiance is trendy and comfortable. Customers will have a nice time in a flashy environment. However, this luxury image should be cleverly related with the new, affordable, take away filter coffee. The message that will be transmitted is luxury can be affordable and can be taken with you. Color Scheme Costa Coffees shops are in warm tones having brown as the main color. Other colors that are used are green, black and white. The purpose of this color selection is the creation of a comfortable and trendy atmosphere. Service: Apart from coffee, Costa has a reputation of excellent service. Hiring and retaining talented employees and train them accordingly is a strategic goal of the company. Product variety: ESPRESSO A short, strong and black coffee, with no milk. ESPRESSO DOPPIO A double espresso shot. For those who like it strong. RISTRETTO An extra short coffee, even shorter than an espresso, with an even stronger flavour. MACCHIATO Espresso topped with just a dash of milk. Yum. AMERICANO Coffee, mixing shots of espresso with hot water. Add milk if you like. FLAT WHITE A rich, full-flavoured coffee with a velvety, smooth texture. Each Flat White is hand-finished with a distinctive pattern. CAPPUCCINO Coffee combining espresso with steamed, frothy milk. Chocolate on top if you have a sweet tooth. CAFFE LATTE Coffee made with steamed milk. Not as strong as a cappuccino, but just as good. MOCHA Espresso with hot chocolate, topped with steamed, frothed milk. (Source: Costa Coffee 2010) Costa Coffee products variety includes iced tea and coffees as well as cakes, pastries, Panini and sandwiches. Prices: Costa Coffee prices are generally higher than other coffee shops. High prices are related to the outstanding quality and taste of Costa Coffee. Therefore, the traditional customer groups of Costa Coffee are high and middle classes. Costa Coffee believes that a reduction in its prices will harm its brand name. However, it wants to increase its Chinese customer base so it will offer a filter coffee for takeaway at affordable prices. Chinese middle class growth rate is significant, it will reach 372 million by 2025, it is a social class that cannot be neglected. Therefore, Costa Coffee is planning in the next three years to offer its products at affordable prices for the Chinese middle class without harming its brand name. Locale / Setting: The next Costa Coffee shops will be at busy intersections e.g. bus, train stations and at areas where office buildings and Universities are located. It will focus again on the big cities like Shanghai and Beijing. The aim for the next three year is to have 30 new coffee shops at both cities. Promotion: Costa Coffee will not do a lot of advertising since its brand name is recognized. However, there will be special sales promotions at its new shops for the new filter coffee that can be taken away. Costa Coffee is based on word of mouth advertising since reputation is very important. MARKET DEMAND It is important to measure the market before launching new products and shops. It is also important to measure the market after the launch of the new products / shops so as to see their effects and gain a larger market share. Growth Share Matrix There are two factors that are important for the expansion to new markets and these are : market attractiveness and the Business Strength. Market Attractiveness Business Strength Factors Rate Factors Rate Overall Market Size 70% increase (2004-2012) Market Share 5.0 Annual Market Growth Rate 7.8 Product Quality 5 Competitive Intensity 4 Brand Reputation 4.5 Technological Requirements 2.5 Distribution Channel 3.5 Inflationary Vulnerability 4.9 Promotional Effectiveness 4.5 Productive Efficiency 4 Managerial Personnel 3.5 Market Attractiveness As it is seen above, the attractiveness of the Chinese market is very high. The annual growth rate of the coffee market is high. There are no significant technological requirements since Costa Coffee already possesses advanced technology. Inflation is quite high and it seems that it will increase in the near future, however the targeted market groups remain unaffected (growing Chinese middle class). Partnership with Yuda will protect Costa Coffee from any possible dangers. Therefore, the Chinese market is very attractive and suitable for coffee shops expansion. Business Strength Costa Coffee is part of the well-known Whitbread Family. The quality of Costa Coffee is unquestionable. Costa Coffee owns more than 500 stores worldwide. Its outlets are in Europe, UK, Middle East, India, Pakistan and China. In order to maintain its excellent reputation, Costa Coffee will continue its policy of recruiting, training and retaining the best available employees in China. Business Strength High Medium Low High Medium Low Costa Coffees Business Strength is high and the overall position is ideal for further expansion into the Chinese market. Projected Sales in CHINA Costa Coffee projected sales are expected to rise to almost 97% in 2012 and this is due to the launch of the new takeaway filter coffee and the new shops at the busy intersections. This rate is expected to slow down (87%) in 2013 and this is because the one time visitors are expected to cease to visit the coffee shops and the existing customer base is expected to remain. An extensive marketing promotion through emails, customer clubs, social media etc. is expected to increase market share. The above numbers are very impressive and expansion seems ideals. Sales forecasts per customer groups are also very promising.: Market 2012 2013 2014 Total Students Youngsters CNY. 20,000,000 CNY. 23,00,000 CNY.6,300,000 CNY 49,300,000 Ex pats and returnees CNY 7,555,000 CNY 7,000,000 CNY. 12,800,000 CNY. 27,355,000 Families CNY. 9,700,000 CNY. 9,850,000 CNY. 17,200,000 CNY. 36,750,000 Professionals CNY. 17,750,000 CNY. 32,750,000 CNY. 92,000,000 CNY. 142,500,000 Totals CNY. 55,005,000 CNY. 72,600,000 CNY. 128,300,000 CNY. 255,905,000 According to the above table it can be seen that professionals is a group that has a lot of potential. This is because the Chinese middle class is rising and the coffee culture is mounting too. Another reason for the increase in sales in professionals is due to the location of the new coffee shops. There will be located in busy intersections where there are many office buildings. Newspapers and other electronic media have approached Costa Coffee and various interviews and programs have been made which boost Costa Coffees reputation even more. BUDGET FORECASTS: The forecasted budget for the upcoming three years is as follows; TYPE 2012 2013 2014 Total Accommodation CNY. 2,000,000 CNY. 5,000,000 CNY. 7,000,000 Training CNY. 1,500,000 CNY. 500,000 CNY. 4,000,000 CNY. 6,000,000 Transportation CNY. 250,000 CNY. 350,000 CNY. 1,000,000 CNY. 1,600,000 Fixtures CNY. 2,000,000 CNY. 7,000,000 CNY. 9,000,000 Total CNY. 5,750,000 CNY. 850,000 CNY. 17,000,000 CNY. 23,600,000 Future promotion and expansion plans: Costa Coffee will be launching more coffee shops in the major cities of China (Beijing and Shangkai) but the plans are to expand all over China after having created a considerable market share in the above cities. The expansion has been planned for the next year that is 2012. In the next two years the next cities where new coffee shops will be located will include Guangzhou and Shenzhen. Costa Coffee is not in favor of extravagant launching campaigns. It supports the use of electronic and social media as well as corporate social responsibility programmes and actions. It also believes in the right location of its shops. So, the marketing activity will be low except the posters that will be in the shops, as sales promotion, advertising the new takeaway filter coffee. ANALYSIS: Costa Coffee has a lot of potential for further intensifying its expansion efforts in China. It already possesses a significant market share in the Chinese market. The reason behind it is the unbeatable image of Costa Coffee and the advertisement (word of mouth) done by people who have visited its outlets. Sales are expected to rise in the following years and they are expected to rise even more in the forthcoming years since Costa Coffee is focusing on the rising Chinese middle class. Students and youngsters in general set the new trends so their influence in increasing coffee consumption and visiting coffee shops is of outmost importance. By further using social media, Costa Coffee is expected to increase its market share in this group. Professionals always seek quiet place to do their official or unofficial meetings. Costa Coffee is an ideal place to do these meetings. Apart from that, Costa Coffees activation in social media will certainly increase its future revenue. In conclusion, it can be said that Costa Coffee has so far implemented an excellent marketing strategy and the new campaign that it will launch for the takeaway filter coffee as well as the location of its new shops will help it increase its sales and gain sustainable competitive advantage. RECOMMENDATIONS: Sales numbers are very promising however the local partner should follow all the below the line activities mentioned. Costa Coffee should continue with low promotional strategies. Apart from posters inside the outlets, Costa Coffee should consider the use of bill boards at the busy intersections.

Money supply in the United States Essay

Money supply in the United States, and indeed any other economy using a central banking reserve system, is controlled and managed by a limited number of private banks working together for their own benefit instead of the benefit of the nation. As Thomas Jefferson, the third President of the United States allegedly once said, â€Å"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs (Quotations Page). Money supply in the United Stated is expanded in line with a fractional reserve policy. This policy whereby the banks retain a fraction of their total deposits, and are then able to lend the rest means there will always be a constantly expanding money supply, and this will always be a multiple larger than the actual amount of base money that is made by the Federal Reserve. This multiple is known as the money multiplier and is calculated by the Federal Reserve based around its reserve requirement and other fiscal regulations. The importance of financial intermediation cannot be understated, as this is required in order to manage the banking and monetary system and to try and avoid banking panics, to serve as the central bank for the government, and to manage the nations’ supply of money through economic policies which try to maximize employment, minimize taxation, and produce positive gross domestic product. The significance of banker’s taste for excess reserves on the Fed’s ability to expand the money supply shows that the fractional reserve system is not perfect and that to gain maximum control over the money multiplier and the supply of money, reserves are needed to manipulate fiscal information to the banker’s benefit. These assets are counted as reserves due to the fact that they are not necessary for the bank to hold these reserves as collateral against its lending, hence they are considered excess. The banks could use these reserves to aggressively increase loans or investments if they so wish. This is a key factor to consider here, that the banker’s taste limit the power of the Fed, as they may be able to undermine the central banking system of the United States by manipulating the money supply.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Works Cited Quotations Page. 13 May 2010 .

BMW vs Mercedes Essay

Bayerische Motoren Werke AG Bayerische Motoren Werke AG ( English: Bavarian Motor Works), commonly known asBMW or BMW AG, is a German automobile, motorcycle and engine manufacturing company founded in 1916. BMW is headquartered in Munich, Bavaria, Germany. It also owns and produces Mini cars, and is the parent company ofRolls-Royce Motor Cars. BMW produces motorcycles under BMW Motorrad. In 2012, the BMW Group produced 1,845,186 automobiles and 117,109 motorcycles across all of its brands. BMW is part of the â€Å"German Big 3† luxury automakers, along with Audi and Mercedes-Benz, which are the three best-selling luxury automakers in the world. History BMW was established as a business entity following a restructuring of the Rapp Motorenwerke aircraft manufacturing firm in 1917. After the end of World War I in 1918, BMW was forced to cease aircraft-engine production by the terms of theVersailles Armistice Treaty.[5] The company consequently shifted to motorcycle production in 1923, once the restrictions of the treaty started to be lifted,[6] followed by automobiles in 1928–29.[7][8][9] The first car which BMW successfully produced and the car which launched BMW on the road to automobile production was the Dixi, it was based on the Austin 7 and licensed from the Austin Motor Company in Birmingham, England. BMW’s first significant aircraft engine was the BMW IIIa inline-six liquid-cooled engine of 1918, much preferred for its high-altitude performance.[10] With German rearmament in the 1930s, the company again began producing aircraft engines for theLuftwaffe. Among its successful World War II engine designs were the BM W 132 and BMW 801 air-cooled radial engines, and the pioneering BMW 003 axial-flow turbojet, which powered the tiny, 1944–1945–era jet-powered â€Å"emergency fighter†, theHeinkel He 162 Spatz. The BMW 003 jet engine was tested in the A-1b version of the world’s first jet fighter, theMesserschmitt Me 262, but BMW engines failed on takeoff, a major setback for the Emergency Fighter Program until successful testing with Junkers engines.[11][12] Towards the end of the Third Reich BMW developed some military aircraft projects for the Luftwaffe, the BMW Strahlbomber, the BMW Schnellbomber and the BMW Strahljà ¤ger, but none of them were built.[13][14] By the year 1959, the automotive division of BMW  was in financial difficulties and a shareholders meeting was held to decide whether to go into liquidation or find a way of carrying on. It was decided to carry on and to try to cash in on the current economy car boom enjoyed so successfully by some of Germanyà ¢â‚¬â„¢s ex-aircraft manufacturers such as Messerschmitt andHeinkel. The rights to manufacture the Italian Iso Isetta were bought; the tiny cars themselves were to be powered by a modified form of BMW’s own motorcycle engine. This was moderately successful and helped the company get back on its feet. The controlling majority shareholder of the BMW Aktiengesellschaft since 1959 is the Quandt family, which owns about 46% of the stock. The rest is in public float. Mercedes-Benz Mercedes-Benz (German pronunciation: [mÉ›Ê Ã‹Ë†tÍ ¡seË dÉ™s ˈbÉ›ntÍ ¡s]) is a German automobile manufacturer, a multinational division of the German manufacturer Daimler AG. The brand is used for luxury automobiles, buses, coaches, and trucks. Mercedes-Benz is headquartered in Stuttgart, Baden-Wà ¼rttemberg, Germany. The name first appeared in 1926 under Daimler-Benz but traces its origins to Daimler-Motoren-Gesellschaft’s 1901Mercedes and to Karl Benz’s 1886 Benz Patent Motorwagen, which is widely regarded as the first automobile. Mercedes-Benz’s slogan is â€Å"Das Beste oder nichts† (English: â€Å"The best or nothing†). Mercedes-Benz is part of the â€Å"German Big 3† luxury automakers, along with Audi and BMW, which are the best selling luxury automakers in the world. Karl Benz in Mannheim, Germany  made the 1886 Benz Patent Motorwagen, which is widely regarded as the first automobile Mercedes-Benz traces its origins to Karl Benz’s creation of the first petrol-powered car, the Benz Patent Motorwagen, financed byBertha Benz[3] and patented in January 1886,[4] and Gottlieb Daimler and engineer Wilhelm Maybach’s conversion of a stagecoach by the addition of a petrol engine later that year. The Mercedes automobile was first marketed in 1901 by Daimler-Motoren-Gesellschaft. The first Mercedes-Benz brand name vehicles were produced in 1926, following the merger of Karl Benz’s and Gottlieb Daimler’s companies into the Daimler-Benz company.[1][4] Throughout the 1930s, Mercedes-Benz produced the 770 model, a car that was popular during Germany’s Nazi period. Adolf Hitler was known to have driven these cars  during his time in power, with bulletproofwindshields. Most of the surviving models have been sold at auctions t o private buyers. One of them is currently on display at the War Museum in Ottawa, Ontario. Mercedes-Benz has introduced many technological and safety innovations that later became common in other vehicles.[5] Mercedes-Benz is one of the best known and established automotive brands in the world, and is also one of the world’s oldest automotive brand still in existence today in 2014, having produced the first petrol-powered car.[6] For information relating to the famous three-pointed star, see under the title Daimler-Motoren-Gesellschaft including the merger into Daimler-Benz. PRODUCT MIX OF BMW BMW is one of the preeminent luxury car manufacturers in Europe, North America, and the world today. BMW produces several lines of cars, including the 3 series, the 5 series, the 7 series, the Z line (driven by Pierce Brosnan as James Bond in Goldeneye), and the new X line, BMW’s â€Å"sport activity† vehicle line. In addition, BMW is now selling Rovers, a British car line anchored by the internationally popular Land Rover sport utility vehicle, and will begin selling Rolls Royce vehicles in 2003. Sales of all the BMW, Rover, and Land Rover vehicles have been on the rise globally. High-profile image campaigns (such as the James Bond promotion) and the award-winning BMW website (where users can design their own car) continue to increase the popularity of BMW’s products. PRODUCT LIFE CYCLE BMW cars typically have a product life cycle of seven years. Motorcycles BMW began production of motorcycle engines and then motorcycles after World War I.[23] Its motorcycle brand is now known as BMW Motorrad. Their first successful motorcycle, after the failed Helios and Flink, was the â€Å"R32† in 1923. This had a â€Å"boxer† twin engine, in which a cylinder projects into the air-flow from each side of the machine. Apart from their single-cylinder models (basically to the same pattern), all their motorcycles used this distinctive layout until the early 1980s. Many BMWs are still produced in this layout, which is designated the R Series. During the Second World War, BMW produced the BMW R75 motorcycle with a sidecar attached. Having a unique design copied from the Zà ¼ndapp KS750, its sidecar wheel was also motor-driven. Combined with a lockable differential, this made the vehicle  very capable off-road, an equivalent in many ways to the Jeep. In 1982, came the K Series, shaft drive but water-cooled and with either three or four cylin ders mounted in a straight line from front to back. Shortly after, BMW also started making the chain-driven F and G series with single and parallel twin Rotaxengines. In the early 1990s, BMW updated the airhead Boxer engine which became known as the oilhead. In 2002, the oilhead engine had two spark plugs per cylinder. In 2004 it added a built-in balance shaft, an increased capacity to 1,170 cc and enhanced performance to 100 hp (75 kW) for the R1200GS, compared to 85 hp (63 kW) of the previous R1150GS. More powerful variants of the oilhead engines are available in the R1100S and R1200S, producing 98 hp (73 kW) and 122 hp (91 kW), respectively. BMW introduced anti-lock brakes on production motorcycles starting in the late 1980s. The generation of anti-lock brakes available on the 2006 and later BMW motorcycles pave the way for the introduction of electronic stability control, or anti-skid technology later in the 2007 model year. Automobiles The New Class (German: Neue Klasse) was a line of compact sedans and coupes starting with the 1962 1500 and continuing through the last 2002s in 1977. Powered by BMW’s celebrated four-cylinder M10 engine, the New Class models had a fully independent suspension, MacPherson struts in front, and front disc brakes. Initially a family of four-door sedans and two-door coupes, the New Class line was broadened to two-door sports sedans with the addition of the 02 Series1600 and 2002 in 1966. Sharing little in common with the rest of the line beyond power train, the sporty siblings caught auto enthusiasts’ attention and established BMW as an international brand. Precursors to the famed BMW 3 Series, the two-doors’ success cemented the firm’s future as an upper tier performance car maker. New Class four-doors with numbers ending in â€Å"0† were replaced by the larger BMW 5 Series in 1972. The upscale 2000C and 2000CS coupes were replaced by the six-cylinder BMW E9, introduced in 1969 with the 2800CS. The 1600 two-door was discontinued in 1975, and the 2002 was replaced by the 320i in 1975. The 1 Series, originally launched in 2004, is BMW’s smallest car. Currently available are the second generation hatchback (F20) and first generation coupe/convertible (E82/E88). The 3 Series, a compact executive car manufactured since model year 1975, is currently in its sixth generation (F30); models include the sport sedan  (F30), and fourth generation station wagon (F30), and convertible (E93), and the Gran Turismo. In 2014, the 4 Series will be released and replace the 3 Series Coupe and Convertible. The 5 Series is a mid-size executive car, available in sedan (F10) and station wagon (F11) forms. The 5 Series Gran Turismo (F07), which debuted in 2010, created a segment between station wagons and crossover SUV.[24] BMW’s full-size flagship executive sedan is the 7 Series. Typically, BMW introduces many of their innovations first in the 7 Series, such as the iDrive system. The 7 Series Hydrogen, having one of the world’s first hydrogen fueled internal combustion engines, is fueled by liquid hydrogen and emits only clean water vapor. The latest generation (F01) debuted in 2009. Based on the 5 Series’ platform, the 6 Series is BMW’s grand touring luxury sport coupe/convertible (F12/F13). A 2-seater roadsterand coupe which succeeded the Z3, the Z4 has been sold since 2002. Motorsport BMW has been engaged in motorsport activities since the dawn of the first BMW motorcycle in 1923. BMW has a history of success in Formula One. BMW powered cars have won 20 races. In 2006 BMW took over the Sauberteam and became Formula One constructors. In 2007 and 2008 the team enjoyed some success. The most recent win is a lone constructor team’s victory by BMW Sauber F1 Team, on 8 June 2008, at the Canadian Grand Prix with Robert Kubicadriving. BMW was an engine supplier to Williams, Benetton, Brabham, and Arrows. Notable drivers who have started their Formula One careers with BMW include Jenson Button, Juan Pablo Montoya, Robert Kubica and Sebastian Vettel. In July 2009, BMW announced that it would withdraw from Formula One at the end of the 2009 season.[27] The team was sold back to the previous owner, Peter Sauber, who kept the BMW part of the name for the 2010 season due to issues with theConcorde Agreement. The team has since dropped BMW from their name starting in 2011 . Public Relations Effective public relations need to play an integral part in BMW marketing strategy. It is important for BMW to maintain regular contact with all organisational stakeholders with the use of various marketing communication channels. Specifically, communication channels used in public relations include, but not limited to online press releases, annual reports, speeches,  and seminars. As part of their corporate social responsibility initiatives BMW management is also recommended to increase the level of its association with local charities in the UK such as Oxfam, NSPCC, or Cancer Research UK. Moreover, BMW management can initiate the development of identity magazine of the BMW Group which can cover the latest trends and news in local and global automobile industry and at the same time serve as an effective channel to communicate the marketing message to the target customer segment. Advertising Advertising can be defined as â€Å"the activity or profession of producing information for promoting the sale of commercial products or services† (Business Dictionary, 2013, online). BMW is recommended to be communicating its marketing message to target customer segment on the basis of using a set of advertising channels. Specifically, engagement in print and broadcast advertisement through channels popular amongst BMW target customer segment needs to be adopted as one of the cores of the marketing strategy. Advertising banners need to be displayed in locations in London frequently attended by BMW target customer segment such as Canary Wharf and City. Moreover, BMW marketing team is recommended to be improving the quality of point-of-sales advertising through supplying audio, video and image materials that motivate salon visitors to commit to the purchase. Sales Promotion Sales promotion involves offering short-term incentives for potential customers to commit to the purchase of products and services. BMW Group is recommended to use sales promotion in the UK market in an occasional manner in order to increase the levels of revenues for short-term perspectives. For example, 100th anniversary of BMW on March 7, 2013 can be specified as an appropriate occasion to announce 10% sales promotion for all BMW models. However, it is important to note that BMW needs to engage in sales promotions in the UK market only in an occasional manner, no more than once a year, because using sales promotion more frequently may cause depreciation of BMW premium brand value. PRICING STRATEGY The prices of BMW Group are based on a differentiated strategy. This means  that they charge extra for premium quality. This difference in prices is due to each cars different engine size, gear levels, fuel consumption, sports version. The pricing strategy that the BMW Group adopts is based on several key trends. One most important trend of BMW is labeled as â€Å"premium-tization†. Premium-tization trend of BMW causes polarization of markets. This trend triggers the consumers to demand and pay much higher prices for the perceived quality. SWOT ANALYSIS OF BMW GROUP A SWOT analysis will be used to see the various Strengths, Weaknesses, Opportunities and Threats of the BMW Group. Strengths: Strong marketing strategy. Customers recognize the strong brand name of BMW Group Company. Strong brand image i.e. BMW, MINI Cooper and Rolls Royce. Every 2 to 3 years BMW introduces its new version of cars i.e. constant innovation and technology. Weaknesses: There is an increasing number of duplicate spare parts of BMW and MINI Cooper. The manufacturing costs of BMW cars are very high as compared to its competitors. This is also a reason for high pricing of BMW cars. Not a mass market company like Toyota and their volumes are small. Opportunities There is an opportunity for BMW Group to increase further innovation and technology in their cars due to increasing competition in car industry. BMW Group should also look to make new collaboration with other car manufacturers i.e. introducing new brands. BMW Group should also look to produce cheaper cars by new innovation and technology. Expansion of the BMW Group in Asia Pacific, Asia, Africa and Australia. Threats Recession which has affected businesses in every part of the world. To maintain the same level of innovation and performance.  The growing competition in the automobile industry i.e. competitors of BMW Group include Mercedes, Audi, Jaguar, Ford, Lexus. The earnings of the BMW Group are Dollar dominated, so the increasing strength of Euro is another  threat for the company. DISTRIBUTION CHANNEL BMW Welt focuses on strengthening the dialogue with customers and visitors by showing a wide range of BMW cars and motorcycles, and providing vehicle distribution, particularly the creation of a special experience with regards to customer collection of an ordered vehicle. BMW Welt also offers shops with BMW auxiliary products, as well as a fully serviced gastronomic restaurant. In the meeting forum, BMW Welt offers conference rooms and the opportunity to stage media events. The building often houses exhibitions related to new BMW models and, since 2012, other BMW Group brands such as Mini and Rolls-Royce BMW plans a new distribution system for the 5-series sedan that will keep some of the vehicles allocated to dealerships in one of three locations around the country. The distribution system would give dealers pools of cars in three locations, said Miles. Rather than ship each dealership’s total monthly allocation to the store, some of the cars will be kept at BMW processing fa cilities on both coasts and in the South. â€Å"The basic principle is to make more of the inventory that exists available to sell and to reduce the dealers’ floorplan cost,† MERCEDES PRODUCT RANGE  VANS Mercedes-Benz Vans sets standards through perfection and meticulous attention to detail. Ground-breaking innovations and excellent value retention are decisive for the brand’s success. With its broad spectrum of offers the brand can really score points with the customer.The Mercedes-Benz Vans product spectrum includes vans, MPVs and camper vans for private and commercial use. Mercedes-Benz Vans stands for sustainable technologies. In particular the new Mercedes-Benz Sprinter, introduced in the spring of 2013, was equipped with technologies that make it even more frugal and environmentally compatible. Whether for a private or commercial customer – Mercedes-Benz Vans is focused on customisation according to the customer’s needs. Although each customer is different, one thing applies to all in the same measure: Mercedes-Benz Vans delivers the best possible solution. TRUCKS As part of the Daimler Trucks division, Mercedes-Benz Trucks has been a hallmark of premium quality for over 100 years now. It stands not only for reliability and economic efficiency, but also for first-class product and service quality and comprehensive expertise in the area of customer-oriented transport solutions. The high standard of quality applies equally to our Actros, Arocs, Axor, Antos and Atego truck series and to special-purpose vehicles from Mercedes-Benz Trucks. The latter include the Mercedes-Benz Econic and the legendary Unimog, for example. Our comprehensive range is rounded off by the Mercedes-Benz Zetros, which has been designed as an off-road truck for deployment in extremely rough terrain. BUSES The world’s first motorised bus was built in Germany by Karl Benz in 1895, some years before Gottlieb Daimler also started to build and sell buses in Germany as well. By 1898 both Karl Benz and Gottlieb Daimler, then rivals, were exporting their buses to Wales and England. Soon Daimler products were sold in the British Empire in a partnership with the British company Milnes. Milnes-Daimler developed a double-decker in 1902 and provided a bus for the first motorised bus service in the United Kingdom the following year. Though the company met success in selling buses throughout the British Empire, the partnership between Daimler and Milnes had to be undone due to the First World War. CARS Mercedes-Benz carries a full range of passenger, light commercial and heavy commercial equipment. Vehicles are manufactured in multiple countries worldwide. The Smart marque of city cars and Maybach luxury cars are also produced by Daimler AG. Between 2003 and 2009, Mercedes-Benz produced a limited-production sports car with McLaren Cars. The resulting Mercedes-Benz SLR McLaren was an extension of the collaboration by which Mercedes engines are used by the Team McLaren-Mercedes Formula One racing team, which was then part owned by Mercedes. SWOT ANALYSIS OF MERCEDES Strength: 1. Mercedes Benz has a strong brand value and global leader in premium cars 2. Lack of capital constraints 3. Leader in innovation i.e. 1st to introduce diesel engines, fuel injection and anti locking brakes 4. More than $12bn allocated for R&D 5. Strong presence in motor sport under McLaren Mercedes 6. Manufactured and assembled in over 20 countries across the world 7. Mercedes holds patents on the majority of safety features Weakness 8. High maintenance cost of Mercedes Benz cars Opportunity: 1. Developing hybrid cars and fuel efficient cars for the future 2. Tapping emerging markets across the world and building a global brand 3. Fast growing luxury automobile market & increased income Threats: 1. Government policies for the automobile sector across the world 2. Ever increasing fuel prices 3. Intense competition from global automobile brands

The Movie Apocalypse Now Is Directed By Francis Ford Coppola

The movie Apocalypse Now is directed by Francis Ford Coppola in 1985. The genre is drama along with a theme of good vs. evil, and man vs. self. The movie is based on a burned out soldier during the Vietnam war, who has been ordered to kill another U.S Soldier who has become a renegade and insane. While, without the sound effects in the first five minutes, the shot can set the tone of the movie. However, two types of sound effects used in the first five minutes make the tone of this movie. The first sounds being asynchronous sound effects. The opening of the movie starts out with a black screen and silence. Next comes a fade in shot of a line of palm trees, here is the first asynchronous sound effect, the use of helicopter sounds. The synchronous sound effect is used as a helicopter flies in an extreme close-up shot. Next shot is that of yellow smoke coming up from the bottom of the screen. The second sound effect is music. As the yellow smoke rises up from the bottom of the screen the song â€Å"The end†, by the Doors starts to play. The song starts out slow just like the smoke rolling up from the bottom. Then as the song intensives so does the smoke. At a minute in to the movie the sound of helicopters is used, while the music continues to play. As the smoke continues to roll in front of the palm trees, there is the landing gear of a helicopter. The palm trees become fully engulfed with fire, like a bomb being dropped on them. The song lyrics come in starting with theShow MoreRelatedAnalysis Of The Movie Apocalypse Now Directed By Francis Ford Coppola912 Words   |  4 Pageswho knows if there even is a Hell; but for a group of soldiers led by U.S Captain of special operations Benjamin Willard in the film Apocalypse Now directed by Francis Ford Coppola, their Hell is all too real. Though it was not in the form of fire and demons, but in the Cambodian jung le during Vietnam. 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